"When there have been recessions in the past the impact on homelessness has been fairly swift," St Mungo's chief executive Charles Fraser told LBC Radio's political reporter Tom Cheal.

"People lose their jobs and quite often they can end up on the streets pretty quickly; particularly those who only hang on to their jobs by their fingertips in the first place.

"So we think it is important that government – when it is considering the consequences of the recession – doesn't just look at the banking system but also at aspects of social welfare including the provision for those right at the bottom of the pile."